Naples tops ‘overvalued’ real estate market list

About 38 percent of the top 299 metro housing markets "are extremely overvalued and at risk for a price correction," according to a third-quarter report released today by National City Corp., a Cleveland-based financial holding company, and Global Insight Inc., an analysis company. "While the incidence of overvaluation clearly increased, we are beginning to see more diversity among metro areas. Not all are moving toward loftier valuations, as was the case during the 2003-2004 period," said Richard DeKaser, chief economist at National City Corp. "Whether the most extremely overvalued markets will have an orderly price correction to more normal, historic levels remains to be seen." According to the "Global Insight/National City Housing Valuation Analysis," the number of extremely overvalued markets declined to 65 in the third quarter from 67 in the second quarter. Four new metro areas joined the list of extremely overvalued markets, while six cities dropped off the list, Nati...